The Zonyo Company on October 1, 2008, sold article "A" for P4,000, costing P2,700. Article "B", a used article was accepted as down payment and the balance on a monthly installment payment of P220 starting November 1, 2008. P1,200 was allowed on the article traded-in. The company estimates reconditioning cost of P80 on this article and a sales price of P1,100 after such reconditioning. The company normally expect 20% gross profit on sale of used articles. The company employs the perpetual method of inventory. On April 1, 2009, the customer defaulted in the payment of installment. Article "A" which was sold was repossessed; its value to the seller is P1,350 allowing for reconditioning cost and a normal gross profit on resale. The amount of realized gross profit in 2008 is:

The Zonyo Company on October 1, 2008, sold article "A" for P4,000, costing P2,700. Article "B", a used article was accepted as down payment and the balance on a monthly installment payment of P220 starting November 1, 2008. P1,200 was allowed on the article traded-in. The company estimates reconditioning cost of P80 on this article and a sales price of P1,100 after such reconditioning. The company normally expect 20% gross profit on sale of used articles. The company employs the perpetual method of inventory. On April 1, 2009, the customer defaulted in the payment of installment. Article "A" which was sold was repossessed; its value to the seller is P1,350 allowing for reconditioning cost and a normal gross profit on resale. The amount of realized gross profit in 2008 is:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Kk25.
Company M uses the cost recovery method. During 19A, it sells goods with a cost of $15,000 for $25,000, payable in installments of $10,000, $10,000 and $5,000, respectively, beginning in 19A. How much profit should be recognized each year?
On February 1, 2019, the telecommunications company sold cellular phones and unlimited calls service to Customer #1 on a 24 month contract. Customer 1 pays CU30 per month for 'free' network and cell phone services. The Company sells Customer #2 the same cellular telephone for CU 150 and the same network services for CU 25 per month. The amount is also the price the company charges when the cellular phone or network service is sold separately. The time value effect of money is negligible in this case. Based on the above case, answer the following questions: How the company recognizes its revenue to Customer #1 and Customer #2? Keep a journal on February 1, 2019 and March 1, 2019
ABC Co., consigned 5 dozen of stainless chairs to DEF Co. on April 1, 2021. Each chair cost P120 and the consignor paid P600 for the shipment to the consignee. On August 15, 2021, 36 chairs were already sold and the consignee rendered an account sale, and remitted the balance due the consignor in the amount of P5,580 after deducting the following: Commission at 15% of the selling price Selling expenses P360Delivery and installation 180Compute for the cost of inventory on consignment in the hand of DEF Co.
MAYUMI Co. sold 50,000 units at P 225 per unit during May of this year. The cost per unit is P150. The entity granted the customers right to return within 90 days if not satisfied and will receive either a full refund if cash was already paid or a full credit for the amount owed to the entity. It is estimated that 7% of the units sold will be returned within the 90-day period. The entity used the perpetual method. What amount of sales revenue should be reported for the month of May?
Vaughn Cosmetics Co. purchased machinery on December 31, 2024, paying $54,400.00 down and agreeing to pay the balance in four equal installments of $53,600.00 payable each December 31. An assumed interest of 10% is implicit in the purchase price. Click here to view factor tables. Prepare the journal entries that would be recorded for the purchase and for (1) the payments and (2) interest on the following dates. (Round present value factor to 5 decimal places, e.g. 1.23465 and final answers to 2 decimal places, e.g. 38,548.23. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) (a) (b) (c) (d) (e) December 31, 2024. December 31, 2025. December 31, 2026. December 31, 2027. December 31, 2028.
Hybrid Dealers bought computer equipment for R54 000 on 1 July 2018. Theequipment is depreciated at 20% according to the diminishing balance method.Required:Prepare the depreciation and closing transfer entries in the general journal ofHybrid Dealers on 31 March 2019 and 31 March 2020 respectively.
On December 15, 2001, star glass Co. entered into a 30-day forward contract to buy 10,000 yens at the forward rate of 1.50. 0n December 31, 2001, the forward rate was 1.25 and january 15,2002, the spot rate moved to 1.60. Provide the journal entries under each of the following scenarios: (a) the contract is settled by the actual purchase of yens; and (b) the contract is settled through net cash payment.
The Samsing Music Corp. sells musical instruments on installment. On October 1, 2008, Samsing sold a karaoke costing P15,000 for P24,000. It has been the policy of Samsing to require its customers a down payment of P2,400 for this kind of instrument and the balance to be paid on installment with an annual interest of 12% starting October 31, 2008. Periodic payments are equal in amount and represent interest on the balance of the principal owed between installment periods, the remainder a reduction in the principal balance. The karaoke was repossessed in February 2009, when the customer defaulted after paying a total of P9,600. It was estimated that the karaoke had a depreciated cost of P8,400 when repossessed. The Samsing Music Corp. uses perpetual inventory account and enters the total deferred gross profit at the time of sale. How much is the total realized gross profit from this sale (rounded to the nearest peso)?